Budget 2025-26: Govt proposes 43.48% slash in IT development budget

ISLAMABAD: The federal government has decided to reduce the development budget of the Ministry of Information Technology and Telecommunication (IT) in the upcoming budget 2025-26.

According to details, a cut of Rs 10.4 billion has been proposed, amounting to a 43.48% reduction compared to the previous fiscal year.

For the budget 2025-26, the development funds for the IT ministry are proposed at Rs13.52 billion. Out of this, Rs3.64 billion will be provided through domestic resources, while Rs9.88 billion is expected to come from external sources.

In the previous fiscal year, the ministry’s development budget stood at Rs23.92 billion, highlighting the substantial scale of the proposed reduction.

The Pakistan government is likely to unveil Rs17.68 trillion budget 2025-26 on June 10, well-placed sources said.

According to details, a significant decline in the policy rate is expected to reduce expenditure on loans and interest payments by approximately Rs1,300 billion in budget 2025-26.

Sources suggest that the size of the upcoming federal budget could be around Rs17.8 trillion, which is Rs 900 billion less than the current fiscal year’s budget of Rs18.7 trillion.

The upcoming budget will place strong emphasis on austerity measures in Pakistan, which will be implemented rigorously.

Sources also indicate that the purchase of new vehicles for all federal ministries and departments will be prohibited. Additionally, ministries will be expected to limit their electricity and gas expenses.